IRS Revenue Procedure
2002-8

Code Sec. NONE



<<FULL TEXT>>

Status: Modified by Notice 2002-1


26 CFR 601.201: Rulings and determination letters.


REV. PROC. 2002-8

TABLE OF CONTENTS

SECTION 1. PURPOSE

SECTION 2. CHANGES
.01 In general
.02 New application procedures for multiple employer plans
.03 Elimination of user fees for certain determination letter
applications
.04 Changes to fee schedules

SECTION 3. BACKGROUND
.01 Legislation authorizing user fees
.02 Related revenue procedures

SECTION 4. SCOPE
.01 Requests to which user fees apply
.02 Requests and other actions that do not require the payment of a
user fee
.03 Exemptions from the user fee requirements

SECTION 5. DEFINITIONS

SECTION 6. FEE SCHEDULE

EMPLOYEE PLANS USER FEES
.01 Letter ruling requests
.02 Requests for certain administrative exemptions
.03 Administrative scrutiny determinations with respect to separate
lines of business
.04 Opinion letters and advisory letters on master and prototype
plans
.05 Opinion letters on prototype individual retirement accounts
and/or annuities, simplified employee pensions, SIMPLE IRAs,
SIMPLE IRA Plans, Roth IRAs and dual-purpose IRAs
.06 Determination letters
.07 Advisory letters on volume submitter plans

EXEMPT ORGANIZATIONS USER FEES
.08 Letter rulings
.09 Determination letters and requests for group exemption letters
.10 Summary of Exempt Organization fees

SECTION 7. MAILING ADDRESS FOR REQUESTING LETTER RULINGS, DETERMINATION
LETTERS, ETC
.01 Matters handled by EP or EO Technical
.02 Matters handled by EP or EO Determinations

SECTION 8. REQUESTS INVOLVING MULTIPLE OFFICES, FEE CATEGORIES, ISSUES,
TRANSACTIONS, OR ENTITIES
.01 Requests involving several offices
.02 Requests involving several fee categories
.03 Requests involving several issues
.04 Requests involving several unrelated transactions
.05 Requests for separate letter rulings for several entities

SECTION 9. PAYMENT OF FEE
.01 Method of payment
.02 Transmittal forms
.03 Effect of nonpayment or payment of incorrect amount

SECTION 10. REFUNDS
.01 General rule
.02 Examples

SECTION 11. REQUEST FOR RECONSIDERATION OF USER FEE

SECTION 12. EFFECT ON OTHER DOCUMENTS

SECTION 13. EFFECTIVE DATE

SECTION 14. PAPERWORK REDUCTION ACT

APPENDIX


SECTION 1. PURPOSE

This revenue procedure provides guidance for complying with the user
fee program of the Internal Revenue Service as it pertains to requests for
letter rulings, determination letters, etc. on matters under the
jurisdiction of the Commissioner, Tax Exempt and Government Entities
Division; and requests for administrative scrutiny determinations under
Rev. Proc. 93-41, 1993-2 C.B. 536.


SECTION 2. CHANGES

.01 IN GENERAL. This revenue procedure is a general update of Rev.
Proc. 2001-8, 2001-1 I.R.B. 239.

.02 NEW APPLICATION PROCEDURES FOR MULTIPLE EMPLOYER PLANS.
Announcement 2001-77, 2001-30 I.R.B. 83, established new determination
letter application procedures, for multiple employer plans and modifies
section 6.06. Under the new procedures, multiple employer plans
applications for a determination letter can request either (1) a letter
for the plan or (2) a letter for the plan and a letter for each employer
maintaining the plan with respect to whom a separate Form 5300 is filed.
If an applicant submits an application for the plan, the user fee for a
single employer plan under section 6.06 will apply. If an applicant
submits an application for the plan and each employer maintaining the plan
(filing a separate Form 5300 application (completed through line 8) for
each employer), the user fee for the application will be determined under
the user fee scheduled for multiple employer plans in section 6.06.

.03 ELIMINATION OF FEE FOR CERTAIN DETERMINATION LETTER APPLICATIONS.
Section 620 of the Economic Growth and Tax Relief Reconciliation Act of
2001, Pub. L. 107-16 (EGTRRA) directs the Internal Revenue Service not to
require payment of user fees for request for determination letters with
respect to the qualified status of certain pension benefit plans
(generally plans maintained by employers with 100 or less employees). The
provisions in section 620 of EGTRRA are effective with respect to a
request for a determination letter made after December 31, 2001.

.04 CHANGES TO FEE SCHEDULE. The Employee Plans and Exempt
Organizations user fees are increased for all categories except the
reduced fee categories, the determination letter categories and the volume
submitter categories.


SECTION 3. BACKGROUND

.01 LEGISLATION AUTHORIZING USER FEES. Section 10511 of the Revenue Act
of 1987, Pub. L. 100-203, 101 Stat. 1330-382, 1330-446, enacted December
22, 1987, directed the Secretary of the Treasury or delegate (the
"Secretary") to establish a program requiring the payment of user fees for
requests to the Service for letter rulings, opinion letters, determination
letters, and similar requests. The fees charged under the program (1) were
to vary according to categories or subcategories established by the
Secretary; (2) were to be determined after taking into account the average
time for, and difficulty of, complying with requests in each category and
subcategory; and (3) were to be payable in advance. The Secretary was to
provide for exemptions and reduced fees under the program as the Secretary
determined to be appropriate, but the average fee applicable to each
category must not be less than the amount specified in the statute. The
fees were to apply to requests made on or after February 1, 1988, and
before September 30, 1990. Section 11319 of the Omnibus Budget
Reconciliation Act of 1990, Pub. L. 101-508, 1991-2 C.B. 481, 511,
extended the time during which the user fees would be applicable through
September 30, 1995. Section 743 of the Uruguay Round Agreements Act, Pub.
L. 103-465, 1995-1 C.B. 230, 239, extended the time during which the user
fees would be applicable through September 30, 2000. Section 2 of the Tax
Relief to Operation Joint Endeavor Participants Act, Pub. L. 104-117,
1996-3 C.B. 1, extended the time during which the user fees will be
applicable through September 30, 2003.

.02 RELATED REVENUE PROCEDURES. The various revenue procedures that
require payment of a user fee, or an administrative scrutiny determination
user fee are described in the appendix to this revenue procedure.


SECTION 4. SCOPE

.01 REQUESTS TO WHICH USER FEES APPLY. In general, user fees apply to
all requests for letter rulings, opinion letters, determination letters,
and advisory letters submitted by or on behalf of taxpayers, sponsoring
organizations or other entities as described in this revenue procedure.
Further, administrative scrutiny determination user fees, described in
Rev. Proc. 93-41, are collected through the user fee program described in
this revenue procedure. Requests to which a user fee or an administrative
scrutiny determination user fee is applicable must be accompanied by the
appropriate fee as determined from the fee schedule set forth in section 6
of this revenue procedure. The fee may be refunded in limited
circumstances as set forth in section 10.

.02 REQUESTS AND OTHER ACTIONS THAT DO NOT REQUIRE THE PAYMENT OF A
USER FEE. Actions which do not require the payment of a user fee include
the following:

(1) Requests for information letters as defined in Rev. Proc. 2002-4,
page 127, this Bulletin.

(2) Elections pertaining to automatic extensions of time under section
301.9100-1 of the Procedure and Administration regulations.

(3) Use of forms which are not to be filed with the Service. For
example, no user fee is required in connection with the use of Form 5305,
Individual Retirement Trust Account, or Form 5305-A, Individual Retirement
Custodial Account, in order to adopt an individual retirement account
under section 408(a). This form should not be filed with the Service.

(4) In general, plan amendments whereby sponsors amend their plans by
adopting, word-for-word, the model language contained in a revenue
procedure which states that the amendment should not be submitted to the
Service and that the Service will not issue new opinion, advisory, ruling
or determination letters for plans that are amended solely to add the
model language.

(5) Change in accounting period or accounting method permitted by a
published revenue procedure that permits an automatic change without prior
approval of the Commissioner.

(6) COMPLIANCE AND CORRECTION FEES. Compliance fees and compliance
correction fees under the Voluntary Compliance Program (VCP) are not
described in this procedure because they are compliance fees or compliance
correction fees and not user fees. For further guidance, please see Rev.
Proc. 2001-17, 2001-7 I.R.B. 589.


.03 EXEMPTIONS FROM THE USER FEE REQUIREMENTS. The following exemptions
apply to the user fee requirements. These are the only exemptions that
apply:

(1) Departments, agencies, or instrumentalities of the United States
that certify that they are seeking a letter ruling, determination letter,
opinion letter or similar letter on behalf of a program or activity funded
by federal appropriations. The fact that a user fee is not charged has no
bearing on whether an applicant is treated as an agency or instrumentality
of the United States for purposes of any provision of the Code.

(2) Requests as to whether a worker is an employee for federal
employment taxes and federal income tax withholding purposes (chapters 21,
22, 23, and 24 of subtitle C of the Code) submitted on Form SS-8,
Information for Use in Determining Whether a Worker is an Employee for
Federal Employment Taxes and Income Tax Withholding, or its equivalent.
Such a request may be submitted in connection with an application for a
determination on the qualification of a plan when it is necessary to
determine whether an employer-employee relationship exists. See section
6.14 of Rev. Proc. 2002-6, page 203, this Bulletin. In that case, although
no user fee applies to the request submitted on Form SS-8, the applicable
user fee must be paid in connection with the application for determination
on the plan's qualification.

(3) Effective with respect to a determination letter application made
after December 31, 2001, user fees for request for determination letters
for pension benefit plans maintained by employers with 100 or less
employees, as provided for in section 620 of EGTRRA.


SECTION 5. DEFINITIONS

The following terms used in this revenue procedure are defined in the
pertinent revenue procedures referred to below, which are described in the
appendix:

Administrative scrutiny determination Rev. Proc. 93-41
Adoption agreement Rev. Proc. 2000-20
Advisory letter Rev. Procs. 2000-20, 2002-6
Basic plan document Rev. Proc. 2000-20
Determination letter Rev. Procs. 90-27, 2002-4
Dual-purpose IRA Rev. Proc. 98-59
Group exemption letter Rev. Proc. 80-27
Information letter Rev. Proc. 2002-4
Letter ruling Rev. Proc. 2002-4
Mass submitter Rev. Procs. 87-50, 2000-20
Mass submitter plan Rev. Proc. 2000-20
Master plan Rev. Proc. 2000-20
Minor modification Rev. Procs. 87-50, 2000-20
Opinion letter Rev. Procs. 2000-20, 2002-4
Prototype plan Rev. Proc. 2000-20
Roth IRA Rev. Proc. 98-59
SIMPLE IRA Rev. Proc. 97-29
SIMPLE IRA Plan Rev. Proc. 97-29
Plan Sponsor Rev. Proc. 2000-20
Sponsoring organization Rev. Procs. 87-50,
Rev. Proc. 2000-20
Volume submitter lead specimen plan Rev. Proc. 2000-20
Volume submitter plan Rev. Proc. 2002-6
Volume submitter specimen plan Rev. Proc. 2002-6
Word-for-word identical adoption Rev. Procs. 87-50, 2000-20


SECTION 6. FEE SCHEDULE

The amount of the user fee payable with respect to each category or
subcategory of submission is as set forth in the following schedule.

CATEGORY FEE
-------- ---
EMPLOYEE PLANS USER FEES
.01 LETTER RULING REQUESTS.
(1) Computation of exclusion for annuitant under
section 72 $90
(2) Change in plan year (Form 5308) $140

NOTE: No user fee is required if the requested change is permitted to be
made pursuant to the procedure for automatic approval set forth in Rev.
Proc. 87-27, 1987-1 C.B. 769. In such a case, Form 5308 should not be
submitted to the Service.

(3) Change in funding method $540
(4) Approval to become a nonbank trustee (see
section 1.408-2(e) of the Income Tax $3,520
Regulations)
(5) Waiver of minimum funding standard, under
section 412(d):
(a) Waiver of $1,000,000 or more $5,200
(b) Waiver of less than $1,000,000 $2,200
(6) Waiver of excise tax under section 4971(b):
(a) Waiver of $1,000,000 or more $5,200
(b) Waiver of less than $1,000,000 $2,220
(7) Waiver of the excise tax, under section
4971(f), on failure to pay a liquidity
shortfall:
(a) Waiver of $1,000,000 or more $5,200
(b) Waiver of less than $1,000,000 $2,200
(8) Letter ruling under Rev. Proc. 90-49,
1990-2 C.B. 620 $325
(9) Letter ruling involving the determination of
the account limit under section 419A(c) $2,470
(10) Individually designed simplified employee
pension (SEP) $2,470
(11) All other letter rulings $2,470

Reduced fees, or augmented fee, applicable to all
other letter rulings:
(a) Letter ruling requests by or on behalf
of eligible retirement plans (within the
meaning of section 402(c)(8)(B)) with
assets of less than $200,000 $600
(b) Letter ruling requests from U.S.
citizens and resident alien individuals,
domestic trusts, and domestic estates
whose "total income" as reported on
their federal income tax return (as
amended) filed for a full (12 months)
taxable year ending before the date the
request is filed, plus any interest
income not subject to tax under section
103 (interest on state and local bonds)
for that period, is less than $200,000 $600

NOTE: The reduced fee applies to a married individual if the combined
gross income of the applicant and the applicant's spouse is less than
$200,000. The gross incomes of the applicant and the applicant's spouse
are not combined, however, if the applicant is legally separated from his
or her spouse and the spouses do not file a joint income tax return with
each other. In the case of a letter ruling request from a domestic estate
or trust that, at the time the request is filed, has not filed an income
tax return for a full taxable year, the reduced fee will be applicable if
the decedent's or (in the case of an individual grantor) the grantor's
total income as reported on the last return filed for a full taxable year
ending before the date of death or the date of the transfer, taking into
account any additions required to be made to total income described in
this subparagraph, is less than $200,000.

(c) Letter ruling requests from
organizations exempt from income tax
under "Subchapter F-Exempt
Organizations" with gross receipts of
less than $200,000 $600

NOTE: An organization exempt from income tax under Subchapter F must
certify in its request for a letter ruling that its gross receipts for the
last full taxable year before the request was filed were less than
$200,000.

(d) In situations in which a taxpayer
requests substantially identical letter
rulings for multiple entities with a
common member or sponsor, or for
multiple members of a common entity,
each additional letter ruling request
after the $2,470 fee or the $600 reduced
fee, as applicable, has been paid for
the first letter ruling request $200
(e) In situations in which a taxpayer
requests a single letter ruling
involving substantially identical issues
of fact and law with respect to multiple
members of a common entity, for each
additional entity after the $2,470 fee
or $600 reduced fee, as applicable, has
been paid for the first entity $200

.02 REQUESTS FOR CERTAIN ADMINISTRATIVE EXEMPTIONS.
Requests for administrative exemptions for
participant-directed transactions that are in
compliance with the regulations under section 404(c)
of the Employee Retirement Income Security Act of
1974 (ERISA) but may result in prohibited
transactions under section 4975 $2,470

NOTE: The provisions of Rev. Proc. 75-26, 1975-1 C.B. 722, are applicable
to such requests.

.03 ADMINISTRATIVE SCRUTINY DETERMINATIONS WITH
RESPECT TO SEPARATE LINES OF BUSINESS.
(1) For the first separate line of business for
which a determination is requested $4,720
(2) For each additional separate line of
business for which a determination is
requested $1,520

.04 OPINION LETTERS AND ADVISORY LETTERS ON MASTER
AND PROTOTYPE PLANS.
(1) Mass submitter M&P plan, per basic plan
document, new or amended, with one adoption
agreement $3,520
(2) Mass submitter M&P plan, per each
additional adoption agreement $460
(3) Sponsor's word-for-word identical adoption
of M&P mass submitter's basic plan document
(or an amendment thereof), per adoption
agreement $120

NOTE 1: Mass submitters that are sponsors in their own right are liable
for this fee.

NOTE 2: If a mass submitter submits, in any 12-month period ending January
31, more than 300 applications on behalf of word-for-word adopters with
respect to a particular adoption agreement, only the first 300 such
applications will be subject to the fee; no fee will apply to those in
excess of the first 300 such applications submitted within the 12-month
period.

(4) Sponsor's minor modification of M&P mass
submitter's plan document, per adoption
agreement $270
(5) Nonmass submission (new or amended) by M&P
sponsor, per adoption agreement $2,110
(6) M&P mass submitter's request for an
advisory letter with respect to the addition
of optional provisions following issuance of
a favorable opinion letter (see section
16.031(c) of Rev. Proc. 2000-20), per basic
plan document (regardless of the number of
adoption agreements) $570
(7) M&P mass submitter's addition of new
adoption agreements after the basic plan
document and associated adoption agreements
have been approved, per adoption agreement $460
(8) Assumption of sponsorship of an approved M&P
plan, without any amendment to the plan
document, by a new entity, as evidenced by a
change of employer identification number $270

.05 OPINION LETTERS ON PROTOTYPE INDIVIDUAL
RETIREMENT ACCOUNTS AND/OR ANNUITIES, SIMPLIFIED
EMPLOYEE PENSIONS, SIMPLE IRAs, SIMPLE IRA
PLANS, AND ROTH IRAs.
(1) Mass submission of a prototype IRA, SEP,
SIMPLE IRA, SIMPLE IRA Plan, or Roth IRA,
per plan document, new or amended $1,250
(2) Sponsoring organization's word-for-word
identical adoption of mass submitter's
prototype IRA, SEP, SIMPLE IRA, SIMPLE IRA
Plan, or Roth IRA, per plan document or an
amendment thereof $120

NOTE: If a mass submitter submits, in any 12-month period ending January
31, more than 300 applications on behalf of word-for-word adopters of
prototype IRAs with respect to a particular plan document, only the first
300 such applications will be subject to the fee; no fee will apply to
those in excess of the first 300 such applications submitted within the
12-month period.

(3) Sponsoring organization's minor modification
of mass submitter's prototype IRA, SEP,
SIMPLE IRA, SIMPLE IRA Plan, or Roth IRA,
per plan document $320
(4) Sponsoring organization's nonmass submission
of prototype IRA, SEP, SIMPLE IRA, SIMPLE
IRA Plan, or Roth IRA, per plan document $460
(5) Opinion letters on dual-purpose (combined
traditional and Roth) IRAs:
(a) Mass submission of a prototype dual-
purpose IRA, per plan document, new or
amended $2,470
(b) Sponsoring organization's word-for-word
identical adoption of mass submitter's
prototype dual-purpose IRA, per plan
document or an amendment thereof $120

NOTE: If a mass submitter submits, in any 12-month period ending January
31, more than 300 applications on behalf of word-for-word adopters of
prototype dual-purpose IRAs with respect to a particular plan document,
only the first 300 such applications will be subject to the fee; no fee
will apply to those in excess of the first 300 such applications submitted
within the 12-month period.

(c) Sponsoring organization's minor
modification of mass submitter's
prototype dual-purpose IRA, per plan
document $650
(d) Sponsoring organization's nonmass
submission of prototype dual-purpose
IRA, per plan document $950

.06 DETERMINATION LETTERS
(1) If the plan is intended to satisfy a design-
based or nondesign-based safe harbor, or if
the applicant is not electing to receive a
determination with respect to any of the
general tests, and the applicant is not
electing to receive a determination with
respect to the average benefit test:
(a) Form 5300 $700
(b) Form 5307 $125
(c) Form 5310 $225
(d) Form 6406 $125
(e) Multiple employer plans (Form 5300):
(i) 2 to 10 Forms 5300 $700
(ii) 11 to 99 Forms 5300 $1,400
(iii) 100 to 499 Forms 5300 $2,800
(iv) Over 499 Forms 5300 $5,600

NOTE: In the case of a multiple employer plan that is adopted by other
employers after the initial submission, the fee would be the same as in
paragraph (1) above. If only one employer adopts the plan in any
subsequent year, the fee would be $700.

(f) Multiple employer plans (Form 5310):
(i) 2 to 10 employers $225
(ii) 11 to 99 employers $450
(iii) 100 to 499 employers $900
(iv) Over 499 employers $1,800
(2) If the applicant is electing to receive a
determination with respect to the average
benefit test and/or any of the general
tests:
(a) Form 5300 $1,250
(b) Form 5307 $1,000
(c) Form 5310 $375
(d) Multiple employer plans (Form 5300):
(i) 2 to 10 Forms 5300 $1,250
(ii) 11 to 99 Forms 5300 $2,000
(iii) 100 to 499 Forms 5300 $3,500
(iv) Over 499 Forms 5300 $6,500

NOTE: In the case of a multiple employer plan that is adopted by other
employers after the initial submission, the fee would be the same as in
paragraph (2) above. If only one employer adopts the plan in any
subsequent year, the fee would be $1,250.

(e) Multiple employer plans (Form 5310):
(i) 2 to 10 employers $375
(ii) 11 to 99 employers $600
(iii) 100 to 499 employers $1,000
(iv) Over 499 employers $2,000
(3) Group trusts contemplated by Rev. Rul.
81-100, 1981-1 C.B. 326 $750

.07 ADVISORY LETTERS ON VOLUME SUBMITTER PLANS.
(1) Volume submitter specimen plans $1,500
(2) Volume Submitter lead specimen plan $3,000
(3) Volume submitter specimen plan that is word-
for-word identical to a lead specimen plan $100

EXEMPT ORGANIZATIONS USER FEES
.08 LETTER RULINGS.
(1) Applications with respect to change in
accounting period (Form 1128) $150

NOTE: No user fee is charged if the procedure described in Rev. Proc.
85-58, 1985-2 C.B. 740, is used by timely filing the appropriate
information return, or if the procedure described in Rev. Proc. 76-10,
1976-1 C.B. 548, for organizations with group exemptions is followed.

(2) Applications with respect to change in
accounting method (Form 3115) $150

NOTE: No user fee is charged if the method described in Rev. Proc. 97-37,
1997-2 C.B. 455, is used. Taxpayers complying timely with Rev. Proc. 97-37
will be deemed to have obtained the consent of the Commissioner of
Internal Revenue to change their method of accounting.

(3) Advance approval of scholarship grant-making
procedures of a private foundation that has
an agreement for the administration of the
scholarship program with the National Merit
Scholarship Corp., or similar organization
administering a scholarship program shown to
meet Service requirements $240
(4) Request for a letter ruling as to whether an
organization exempt from federal income tax
is required to file an annual return under
section 6033 $240

NOTE 1: See Rev. Proc. 95-48, 1995-2 C.B. 418, which specifies that
governmental units and affiliates of governmental units that are exempt
from federal income tax under section 501(a) are not required to file
annual information returns on Form 990, Return of Organization Exempt from
Income Tax.

NOTE 2: There is no additional charge for a determination of the section
6033 filing requirement from an organization seeking recognition of exempt
status under section 501 if the organization submits the information
required by line 9 of Part I of Form 1023, Application for Recognition of
Exemption under Section 501(c)(3) of the Code, or submits a separate
written request with its application for recognition of exemption. Only
the user fee for the initial application for recognition of exemption
applies.

(5) Request for approval of a qualified
subsidiary related to a section 501(c)(25)
organization. $595
(6) All other letter rulings $2,470
Reduced fees applicable to all other letter rulings:
(a) Organizations with gross receipts less
than $200,000 $600

NOTE: An exempt organization seeking a reduced fee must certify in the
letter ruling request that its gross receipts for the last taxable year
before the request is filed were less than $200,000.

(b) Letter ruling requests from U.S.
citizens and resident alien individuals,
domestic trusts, and domestic estates
whose "total income" as reported on
their federal income tax return (as
amended) filed for a full (12 months)
taxable year ending before the date the
request is filed, plus any interest
income not subject to tax under section
103 (interest on state and local bonds)
for that period, is less than $200,000 $600

<<END RULING>>


NOTE: The reduced fee applies to a married individual if the combined
gross income of the applicant and the applicant's spouse is less than
$200,000. The gross incomes of the applicant and the applicant's spouse
are not combined, however, if the applicant is legally separated from his
or her spouse and the spouses do not file a joint income tax return with
each other. In the case of a letter ruling request from a domestic estate
or trust that, at the time the request is filed, has not filed an income
tax return for a full taxable year, the reduced fee will be applicable if
the decedent's or (in the case of an individual grantor) the grantor's
total income as reported on the last return filed for a full taxable year
ending before the date of death or the date of the transfer, taking into
account any additions required to be made to total income described in
this subparagraph, is less than $200,000.

(c) Letter ruling requests in which a
taxpayer requests substantially
identical letter rulings for multiple
entities with a common member or
activity, or multiple members of a
common entity, each additional letter
ruling request after the $2,470 fee or
the $600 reduced fee, as applicable, has
been paid for the first letter ruling
request $200

.09 DETERMINATION LETTERS AND REQUESTS FOR GROUP
EXEMPTION LETTERS
(1) Initial application for exemption under
section 501 or section 521 from
organizations (other than pension, profit-
sharing, and stock bonus plans described in
section 401) that have had annual gross
receipts averaging not more than $10,000
during the preceding four years, or new
organizations that anticipate gross receipts
averaging not more than $10,000 during their
first four years $150

NOTE: Organizations seeking this reduced fee must sign a certification
with their application that the receipts are or will be not more than the
indicated amounts.

(2) Initial application for exempt status from
organizations otherwise described in
paragraph (1) of this section 6.13 whose
actual or anticipated gross receipts exceed
the $10,000 average annually $500

NOTE: If an organization that is already recognized as exempt under
section 501(c) seeks reclassification under another subparagraph of
section 501(c), a new user fee will be charged whether or not a new
application is required. An additional fee applies to organizations that
seek recognition of exemption under section 501(c)(4) (unless requested at
the time of the section 501(c)(3) application) for a period for which they
do not qualify for exemption under section 501(c)(3) because their
application was filed late and they do not qualify for relief under
section 301.9100-1.

(3) Group exemption letters $500

NOTE: An additional fee under (1) or (2) above is required when a central
organization submits an initial application for exemption with its request
for a group exemption letter.

.10 SUMMARY OF EXEMPT ORGANIZATION FEES
This table summarizes the various types of exempt
organization issues, indicates the office of
jurisdiction for each type, and lists the applicable
user fee. Reduced fees may be applicable in certain
instances.

ISSUE OFFICE FEE
----- ------ ---
Accounting period and method changes Technical $150

Advance ruling period inquiries Determinations None

Amendments, reorganizations, name changes Determinations None

Application for recognition of exemption Determinations $500

Confirmation of exemption Determinations None

Qualified subsidiaries of section
501(c)(25) organizations Technical $595

Regulations 301.9100 relief in
connection with applications
for recognition of exemption Determinations None

Section 507 terminations
(a) Notice under section 507(b)(1)
or (2) Determinations None
(b) Advance ruling under 507(b)(1)
or (2) Technical $2,470

Section 514(b)(3) Neighborhood Land Use
Rule Technical None

Section 4940(d) exempt operating
foundation status Determinations None

Section 4942(g)(2) set-asides notification Determinations None

Section 4943(c)(7) extensions of
disposal period Technical $2,470

Section 4945 advance approval of
organization's grant making procedures Determinations None

Section 4945(f) advance approval of
voter registration activities Determinations None

Section 6033 annual information return
filing requirements
(a) requested with original application Determinations None
(b) requested after recognition of
exemption Technical $240

Unusual grants to certain organizations
under sections 170(b)(1)(A)(vi) and
509(a)(2) Determinations None


SECTION 7. MAILING ADDRESS FOR REQUESTING LETTER RULINGS, DETERMINATION
LETTERS, ETC.

.01 MATTERS HANDLED BY EP OR EO TECHNICAL. Requests should be mailed to
the appropriate address set forth in this section 7.01.

(1) EMPLOYEE PLANS LETTER RULINGS UNDER REV. PROCS. 79-61, 79-62,
87-50, 90-49, 94-41, 94-42, 2000-41 OR 2002-4:

Internal Revenue Service
Attention: EP Letter Rulings
P.O. Box 27063
McPherson Station
Washington, D.C. 20038


(2) EMPLOYEE PLANS OPINION LETTERS OR ADVISORY LETTERS UNDER REV.
PROCS. 87-50, 97-29, 98-59 AND 2000-20:

Internal Revenue Service
Attention: EP Opinion/Advisory Letter
P.O. Box 27063
McPherson Station
Washington, D.C. 20038


(3) EMPLOYEE PLANS ADMINISTRATIVE SCRUTINY DETERMINATIONS UNDER REV.
PROC. 93-41:

Internal Revenue Service
Attention: Administrative Scrutiny
P.O. Box 27063
McPherson Station
Washington, D.C. 20038


(4) EXEMPT ORGANIZATIONS LETTER RULINGS:

Internal Revenue Service
Attention: EO Letter Rulings
P.O. Box 27720
McPherson Station
Washington, D.C. 20038


NOTE: Hand delivered requests must be marked RULING REQUEST SUBMISSION.
The delivery should be made:

To the following address between the hours of 8:00 a.m. and 4:00 p.m.,
where a receipt will be given:

Courier's Desk
Internal Revenue Service
Attention: T:EP [or T:EO]
1111 Constitution Avenue, NW
Washington, D.C. 20224


.02 MATTERS HANDLED BY EP OR EO DETERMINATIONS OFFICE. The following
types of requests and applications are handled by the EP or EO
Determinations Office and should be sent to the Internal Revenue Service
Center in Covington, Kentucky, at the address shown below: requests for
determination letters and volume submitter advisory letters on the
qualified status of employee plans under sections 401, 403(a), and 409,
and the exempt status of any related trust under section 501; applications
for recognition of tax exemption on Form 1023, Form 1024, and Form 1028;
and other applications for recognition of qualification or exemption. The
address is:

Internal Revenue Service
P.O. Box 192
Covington, KY 41012-0192


Applications shipped by Express Mail or a delivery service should be
sent to:

Internal Revenue Service
201 West Rivercenter Blvd.
Attn: Extracting Stop 312
Covington, KY 41011


SECTION 8. REQUESTS INVOLVING MULTIPLE OFFICES, FEE CATEGORIES, ISSUES,
TRANSACTIONS, OR ENTITIES

.01 REQUESTS INVOLVING SEVERAL OFFICES. If a request dealing with only
one transaction involves more than one of the offices within Headquarters
(for example, one issue is under the jurisdiction of the Associate Chief
Counsel (Income Tax & Accounting) and another issue is under the
jurisdiction of the Commissioner, Tax Exempt and Government Entities
Division), only one fee applies, namely the highest fee that otherwise
would apply to each of the offices involved. See Rev. Proc. 2002-1, this
Bulletin, for the user fees applicable to issues under the jurisdiction of
the Associate Chief Counsel (Corporate), the Associate Chief Counsel
(Financial Institutions & Products), the Associate Chief Counsel (Income
Tax & Accounting), the Associate Chief Counsel (Passthroughs & Special
Industries), the Associate Chief Counsel (Procedure and Administration),
the Associate Chief Counsel (International) or the Division
Counsel/Associate Chief Counsel (Tax Exempt and Government Entities).

.02 REQUESTS INVOLVING SEVERAL FEE CATEGORIES. If a request dealing
with only one transaction involves more than one fee category, only one
fee applies, namely the highest fee that otherwise would apply to each of
the categories involved.

.03 REQUESTS INVOLVING SEVERAL ISSUES. If a request dealing with only
one transaction involves several issues, or a request for a change in
accounting method dealing with only one item or sub-method of accounting
involves several issues, or a request for a change in accounting period
dealing with only one item involves several issues, the request is treated
as one request. Therefore, only one fee applies, namely the fee that
applies to the particular category or subcategory involved. The addition
of a new issue relating to the same transaction will not result in an
additional fee, unless the issue places the transaction in a higher fee
category.

.04 REQUESTS INVOLVING SEVERAL UNRELATED TRANSACTIONS. If a request
involves several unrelated transactions, or a request for a change in
accounting method involves several unrelated items or sub-methods of
accounting, or a request for a change in accounting period involves
several unrelated items, each transaction or item is treated as a separate
request. As a result, a separate fee will apply for each unrelated
transaction or item. An additional fee will apply if the request is
changed by the addition of an unrelated transaction or item not contained
in the initial submission.

.05 REQUESTS FOR SEPARATE LETTER RULINGS FOR SEVERAL ENTITIES. Each
entity involved in a transaction (for example, an exempt hospital
reorganization) that desires a separate letter ruling in its own name must
pay a separate fee regardless of whether the transaction or transactions
may be viewed as related. In certain situations, however, a reduced fee
may be charged. See sections 6.01(11) and 6.08(6) of this revenue
procedure.


SECTION 9. PAYMENT OF FEE

.01 METHOD OF PAYMENT. Each request to the Service for a letter ruling,
determination letter, opinion letter, etc., must be accompanied by a check
or money order, payable to the United States Treasury, in the appropriate
amount. Taxpayers should not send cash.

.02 TRANSMITTAL FORMS. Form 8717, User Fee for Employee Plan
Determination Letter Request, and Form 8718, User Fee for Exempt
Organization Determination Letter Request, are intended to be used as
attachments to determination letter, notification letter and advisory
letter applications. Space is reserved for the attachment of the
applicable user fee check or money order. No similar form has been
designed to be used in connection with requests for letter rulings,
opinion letters, or administrative scrutiny determinations.

.03 EFFECT OF NONPAYMENT OR PAYMENT OF INCORRECT AMOUNT. It will be the
general practice of the Service that:

(1) The respective offices within the Service that are responsible for
issuing letter rulings, determination letters, etc., will exercise
discretion in deciding whether to immediately return submissions that are
not accompanied by a properly completed check or money order or that are
accompanied by a check or money order for less than the correct amount. In
those instances where the submission is not immediately returned, the
requester will be contacted and given a reasonable amount of time to
submit the proper fee. If the proper fee is not received within a
reasonable amount of time, the entire submission will then be returned.
However, the respective offices of the Service, in their discretion, may
defer substantive consideration of a submission until proper payment has
been received.

(2) An application for a determination letter will not be returned
merely because Form 8717 or Form 8718 was not attached.

(3) The return of a submission to the requester may adversely affect
substantive rights if the submission is not perfected and resubmitted to
the Service within 30 days of the date of the cover letter returning the
submission. Examples of this are: (a) where an application for a
determination letter is submitted prior to the expiration of the remedial
amendment period under section 401(b) and is returned because no user fee
was attached, the submission will be timely if it is resubmitted by the
expiration of the remedial amendment period or, if later, within 30 days
after the application was returned; and (b) where an application for
exemption under section 501(c)(3) is submitted before expiration of the
period provided by section 1.508-1(a)(2) and is returned because no user
fee was attached, the submission will be timely if it is resubmitted
before expiration of the period provided by section 1.508-1(a)(2) or
within 30 days, whichever is later.

(4) If a check or money order is for more than the correct amount, the
submission will be accepted and the amount of the excess payment will be
returned to the requester.


SECTION 10. REFUNDS

.01 GENERAL RULE. In general, the fee will not be refunded unless the
Service declines to rule on all issues for which a ruling is requested. In
the case of a request for a letter ruling, if the case has been closed by
the Service because essential information has not been submitted timely,
the request may be reopened and treated as a new request, but the taxpayer
must pay another user fee before the case can be reopened. See section
11.04(5) of Rev. Proc. 2002-4, page 127, this Bulletin.

.02 EXAMPLES.

(1) The following are examples of situations in which the fee will not
be refunded:

(a) The request for a letter ruling, determination letter, etc. is
withdrawn at any time subsequent to its receipt by the Service, unless the
only reason for withdrawal is that the Service has advised the requester
that a higher user fee than was sent with the request is applicable and
the requester is unwilling to pay the higher fee. For example, no fee will
be refunded where the taxpayer has been advised that a proposed adverse
ruling is contemplated and subsequently withdraws its submission.

(b) The request is procedurally deficient, although accompanied by the
proper fee and is not timely perfected by the requester. When there is a
failure to timely perfect the request, the case will be considered closed
and the failure to perfect will be treated as a withdrawal for purposes of
this revenue procedure.

(c) A letter ruling, determination letter, etc., is revoked in whole or
in part at the initiative of the Service. The fee paid at the time the
original letter ruling, determination letter, etc., was requested will not
be refunded.

(d) The request contains several issues and the Service rules on some,
but not all, of the issues. The highest fee applicable to the issues on
which the Service rules will not be refunded.

(e) The taxpayer asserts that a letter ruling the taxpayer received
covering a single issue is erroneous or not responsive (other than an
issue on which the Service has declined to rule) and requests
reconsideration. The Service, upon reconsideration, does not agree that
the letter ruling is erroneous or is not responsive. The fee accompanying
the request for reconsideration will not be refunded.

(f) The situation is the same as described in subparagraph (e) of this
section 10.02(1) except that the letter ruling covered several unrelated
transactions. The Service, upon reconsideration, does not agree with the
taxpayer that the letter ruling is erroneous or is not responsive for all
of the transactions, but does agree that it is erroneous as to one
transaction. The fee accompanying the request for reconsideration will not
be refunded except to the extent applicable to the transaction for which
the Service agrees the letter ruling was in error.

(g) The request is for a supplemental letter ruling, determination
letter, etc., concerning a change in facts (whether significant or not)
relating to the transaction ruled on.

(h) The request is for reconsideration of an adverse or partially
adverse letter ruling or a final adverse determination letter, and the
taxpayer submits arguments and authorities not submitted before the
original letter ruling or determination letter was issued.

(2) The following are examples of situations in which the fee will be
refunded:

(a) In a situation to which section 10.02(1)(h) of this revenue
procedure does not apply, the taxpayer asserts that a letter ruling the
taxpayer received covering a single issue is erroneous or is not
responsive (other than an issue on which the Service declined to rule) and
requests reconsideration. The Service agrees, upon reconsideration, that
the letter ruling is erroneous or is not responsive. The fee accompanying
the taxpayer's request for reconsideration will be refunded.

(b) In a situation to which section 10.02(1)(h) of this revenue
procedure does not apply, the requester requests a supplemental letter
ruling, determination letter, etc. to correct a mistake that the Service
agrees it made in the original letter ruling, determination letter, etc.,
such as a mistake in the statement of facts or in the citation of a Code
section. Once the Service agrees that it made a mistake, the fee
accompanying the request for the supplemental letter ruling, determination
letter, etc., will be refunded.

(c) The taxpayer requests and is granted relief under section 7805(b)
in connection with the revocation in whole or in part, of a previously
issued letter ruling, determination letter, etc. The fee accompanying the
request for relief will be refunded.

(d) In a situation to which section 10.02(1)(d) of this revenue
procedure applied, the taxpayer requests reconsideration of the Service's
decision not to rule on an issue. Once the Service agrees to rule on the
issue, the fee accompanying the request for reconsideration will be
refunded.


SECTION 11. REQUEST FOR RECONSIDERATION OF USER FEE

A taxpayer that believes the user fee charged by the Service for its
request for a letter ruling, determination letter, etc., is either not
applicable or incorrect and wishes to receive a refund of all or part of
the amount paid (see section 10 of this revenue procedure) may request
reconsideration and, if desired, the opportunity for an oral discussion by
sending a letter to the Internal Revenue Service at the applicable Post
Office Box or other address given in section 7. Both the incoming envelope
and the letter requesting such reconsideration should be prominently
marked "USER FEE RECONSIDERATION REQUEST." No user fee is required for
these requests. The request should be marked for the attention of:

If the matter involves primarily: Mark for the attention of:
--------------------------------- --------------------------
Employee plans letter ruling requests Employee Plans Technical
and all other employee plans matters
handled by EP Technical

Exempt organizations letter ruling Exempt Organizations Technical
requests

Employee plans determination letter Manager, EP Determinations
requests Quality Assurance

Exempt organizations determination Manager, EO Determinations
letter requests Quality Assurance


SECTION 12. EFFECT ON OTHER DOCUMENTS

.01 Rev. Proc. 2001-8, 2001-1 I.R.B. 239, is superseded.


SECTION 13. EFFECTIVE DATE

This revenue procedure is effective January 1, 2002.


SECTION 14. PAPERWORK REDUCTION ACT

The collections of information contained in this revenue procedure have
been reviewed and approved by the Office of Management and Budget in
accordance with the Paperwork Reduction Act (44 U.S.C. 3507) under control
number 1545-1520.

An agency may not conduct or sponsor, and a person is not required to
respond to, a collection of information unless the collection of
information displays a valid control number.

The collections of information in this revenue procedure are in
sections 6.01(11)(d), 6.08(6)(b), and 6.09. This information is required
to substantiate that a taxpayer or an exempt organization seeking to pay a
reduced user fee with respect to a request for a letter ruling is entitled
to pay the reduced fee; to identify the user fee category and
corresponding fee required to be paid with respect to determination letter
requests; to request reconsideration of the user fee charged by the
Service and, in connection with such a request, to indicate whether an
oral discussion is desired. This information will be used to enable the
Service to determine whether the taxpayer or exempt organization is
entitled to pay a reduced user fee, to ascertain whether reconsideration
of the user fee is being requested and, if it is being requested, whether
an oral discussion is requested. The collections of information are
voluntary, to obtain a benefit. The likely respondents are individuals,
business or other for-profit institutions, nonprofit institutions, and
small businesses or organizations. The estimated total annual reporting
and/or recordkeeping burden is 300 hours.

The estimated annual burden per respondent/recordkeeper varies from one
hour to ten hours, depending on individual circumstances, with an
estimated average of three hours. The estimated number of respondents
and/or record-keepers is 90 (requests for reduced fees) and 10 (requests
for reconsideration of fee).

The estimated annual frequency of responses is on occasion.

Books or records relating to a collection of information must be
retained as long as their contents may become material in the
administration of any internal revenue law. Generally tax returns and tax
return information are confidential, as required by 26 U.S.C. 6103.


DRAFTING INFORMATION

The principal author of this revenue procedure is Jeanne Royal Singley
of Employee Plans, Tax Exempt and Government Entities Division. For
further information regarding employee plans matters in this revenue
procedure, please contact the Employee Plans' taxpayer assistance
telephone service 1-877-829-5500 (a toll-free number) between the hours of
8:00 a.m. and 6:30 p.m., Eastern time, Monday through Friday. Ms. Singley
may be reached at (202) 283-9888 (not a toll-free number). For exempt
organization matters, please contact Mr. Wayne Hardesty at (202) 283-8976
(not a toll-free number).


APPENDIX

Following is a list of revenue procedures requiring payment of a user
fee or an administrative scrutiny determination user fee.


A. PROCEDURES APPLICABLE TO BOTH EMPLOYEE PLANS AND EXEMPT
ORGANIZATIONS

Rev. Proc. 2002-4, this Bulletin, provides procedures for issuing
letter rulings, information letters, etc., on matters relating to matters
under the jurisdiction of the Commissioner, Tax Exempt and Government
Entities Division.


B. PROCEDURES APPLICABLE TO EMPLOYEE PLANS MATTERS OTHER THAN ACTUARIAL
MATTERS

Rev. Proc. 75-26, 1975-1 C.B. 722, sets forth the general procedures of
the Internal Revenue Service for the processing of applications for
exemption under section 4975(c)(2) of the Code.

Rev. Proc. 87-50, 1987-2 C.B. 647, as modified by Rev. Proc. 91-44 and
Rev. Proc. 92-38, sets forth the procedures of the Service relating to the
issuance of rulings and opinion letters with respect to the establishment
of individual retirement accounts and annuities (IRAs) under section 408,
the entitlement to exemption of related trusts or custodial accounts under
section 408(e), and the acceptability of the form of prototype simplified
employee pension (SEP) agreements under sections 408(k) and 415.

Rev. Proc. 92-24, 1992-1 C.B. 739, provides procedures for requesting
determination letters on the effect on a plan's qualified status under
section 401(a) of the Code of plan language that permits, pursuant to
section 420, the transfer of assets in a defined benefit plan to a health
benefits account described in section 401(h).

Rev. Proc. 92-38, 1992-1 C.B. 859, provides notice that individual
retirement arrangement trusts, custodial account agreements, and annuity
contracts must be amended to provide for the required distribution rules
in section 408(a)(6) or (b)(3). In addition, Rev. Proc. 92-38 modifies the
guidance in Rev. Proc. 87-50 with regard to opinion letters issued to
sponsoring organizations, including mass submitters and sponsors of
prototype IRAs.

Rev. Proc. 93-41, 1993-2 C.B. 536, sets forth the procedures of the
Service relating to the issuance of an administrative scrutiny
determination as to whether a separate line of business satisfies the
requirement of administrative scrutiny within the meaning of section
1.414(r)-6.

Rev. Proc. 97-29, 1997-1 C.B. 698, describes model amendments for
SIMPLE IRAs; guidance to drafters of prototype SIMPLE IRAs on obtaining
opinion letters; permissive amendments to sponsors of nonSIMPLE IRAs; the
opening of a prototype program for SIMPLE IRA Plans; and transitional
relief for users of SIMPLE IRAs and SIMPLE IRA Plans that have not been
approved by the Service.

Rev. Proc. 98-59, 1998-2 C.B. 727, provides guidance on obtaining
opinion letters to drafters of prototype Roth IRAs, and provides
transitional relief for users of Roth IRAs that have not been approved by
the Internal Revenue Service.

Rev. Proc. 2000-20, 2000-6 I.R.B. 553, revises and combines the
Service's master and prototype (M&P) and regional prototype programs into
a unified program for the pre-approval of pension, profit-sharing and
annuity plans.

Rev. Proc. 2002-6, this Bulletin, provides procedures for issuing
determination letters on the qualified status of employee plans under
section 401(a), 403(a), 409, and 4975(e)(7).


C. EMPLOYEE PLANS ACTUARIAL MATTERS

Rev. Proc. 79-61, 1979-2 C.B. 575, outlines the procedure by which a
plan administrator or plan sponsor may request and obtain approval for an
extension of an amortization period in accordance with section 412(e) of
the Code and section 304(a) of ERISA.

Rev. Proc. 79-62, 1979-2 C.B. 576, outlines the procedure by which a
plan sponsor or administrator may request a determination that a plan
amendment is reasonable and provides for only de minimis increases in plan
liabilities in accordance with section 412(f)(2)(A) of the Code and
section 304(b)(2)(A) of ERISA.

Rev. Proc. 90-49, 1990-2 C.B. 620, modifies and replaces Rev. Proc.
89-35, 1989-1 C.B. 917, in order to extend the effective date to
contributions made for plan years beginning after December 31, 1989, to
change the deadline for requesting rulings under the revenue procedure, to
revise the information requirements for a ruling request made under the
revenue procedure, to furnish a worksheet for actuarial computations, and
to provide a special rule under which certain de minimis nondeductible
employer contributions to a qualified defined benefit plan may be returned
to the taxpayer without a formal ruling or disallowance from the Service.

Rev. Proc. 94-41, 1994-1 C.B. 711, sets forth procedures for requesting
waivers of the minimum funding standard described in section 412(d) and
the issuance of such waivers by the Assistant Commissioner (Employee Plans
and Exempt Organizations).

Rev. Proc. 94-42, 1994-1 C.B. 717, supersedes Rev. Proc. 79-18, 1979-1
C.B. 525, and Rev. Rul. 79-215, 1979-2 C.B. 190, and sets forth a
procedure for obtaining approval of an amendment to a qualified plan that,
under section 412(c)(8), reduces the accrued benefits of plan
participants.

Rev. Proc. 2000-41, 2000-42, I.R.B. 371, sets forth the procedure by
which a plan administrator or plan sponsor may obtain approval of the
Secretary of the Treasury for a change in funding method as provided by
section 412(c)(5) of the Code and section 302(c)(5) of ERISA.


D. PROCEDURES APPLICABLE TO EXEMPT ORGANIZATIONS MATTERS ONLY

Rev. Proc. 80-27, 1980-1 C.B. 677, provides procedures under which
recognition of exemption from federal income tax under section 501(c) may
be obtained on a group basis for subordinate organizations affiliated with
and under the general supervision or control of a central organization.
This procedure relieves each of the subordinates covered by a group
exemption letter from filing its own application for recognition of
exemption.

Rev. Proc. 90-27, 1990-1 C.B. 514, sets forth revised procedures with
regard to applications for recognition of exemption from federal income
tax under sections 501 and 521.

<<END RULING>>


 

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